Tim Loughton
Main Page: Tim Loughton (Conservative - East Worthing and Shoreham)
Mr Speaker
We need to speed up a tad, and I am sure that we can be led in our mission by the hon. Member for East Worthing and Shoreham (Tim Loughton).
Tim Loughton (East Worthing and Shoreham) (Con)
3. What assessment she has made of the implications for her Department’s policies on energy efficiency of EU proposals to increase the level of VAT applicable to energy-saving products.
The Secretary of State for Energy and Climate Change (Amber Rudd)
The UK has applied a reduced rate on 11 different types of energy-saving materials since 2001. That remains in place and unchanged—and that is where we want it to stay.
Tim Loughton
For 13 years, Gordon Brown laboured to reduce VAT on energy-saving materials in the face of EU opposition, even getting President Sarkozy onside in 2007, but to no avail. With VAT on installations set to increase to 20% after the European Court of Justice judgment, does the Minister agree that the most likely route to allow the British Government to incentivise energy saving in the interests of British consumers and the planet is to vote leave on 23 June?
Amber Rudd
Let me take issue with my hon. Friend’s first point, which was that there will be no changes. If he checks the Finance Bill, which is published today, he will see that VAT is not rising as had been foretold. One reason why is the Prime Minister’s VAT action plan: he was able to go to Brussels and negotiate a better relationship so that countries can have their own VAT rates stayed. It seems to me that that is a very good example of the EU working for this country.